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Bill Shorten and Dan Tehan trade barbs ahead of Reserve Bank interest rate call

A Labor frontbencher took over the role of interviewer during a fiery morning show appearance ahead of the RBA’s interest rate call.

Economists split over whether RBA will raise rates

A fired-up Bill Shorten and Dan Tehan have traded barbs in a lively interview in which the former Labor leader likened his sparring partners' views on wage growth to being “half-pregnant”.

The senior politicians fronted up on the Today Show ahead of the release of the Reserve Bank of Australia’s decision on whether to lift interest rates for the 13th time since last May.

Mr Shorten said he had his “fingers crossed’ it would not lift rates. When asked, he denied the federal government’s push to lift wages had exacerbated the situation.

“Wage growth is well below inflation. The argument that when inflation is going up, wages shouldn’t go up by a portion of the increase … is further starving people and making life hard for them,” the NDIS Minister told Nine.

Bill Shorten said he had his fingers crossed the RBA wouldn’t lift rates.
Bill Shorten said he had his fingers crossed the RBA wouldn’t lift rates.

Mr Tehan responded by claiming the actions of the Albanese government did not help the central bank do its job.

The Coalition frontbenchers' comments did not sit well with Mr Shorten, who locked host Sarah Abo out of the interview chair and put his own questions to Mr Tehan.

“I’m pretty sure Dan that Sarah just asked you two things: What do you hope they (the RBA) do? And secondly, d o you think that the wages increase is driving inflation?” he asked.

“The Libs sort of want to have a bet each way, you just blamed Labor … Do you support the latest wage increase or do you think it’s too much?”

Mr Tehan noted the NDIS Minister himself just admitted wages weren’t keeping up with inflation.

“You’re not dealing with wages, they’re not going up. They’re going down and Australian families are hurting as a result,” he hit back.

Mr Tehan was accused of having a bet each way on wages.
Mr Tehan was accused of having a bet each way on wages.

“So everything you promised before the last election, about wages going up. And people’s cost of living been dealt with isn’t working.”

Mr Shorten pressed again despite Abo’s attempts to move the topic on: “Now the Libs criticise us because wages aren’t increasing higher than inflation. You can’t be half pregnant. You’re for or against it.”

The frustrated Liberal MP urged Mr Shorten to “hear him out” while the Labor frontbencher repeated interjected “it’s a biological miracle”.

“You can have real wages growth in a low-inflation environment. We’re not getting real wages growth and look what you’re doing to exacerbate it, bringing 1.5 million people into this country this year and over the next four years which is going to exacerbate this further,” Mr Tehan said, referring to the migration rate.

Reserve Bank governor Philip Lowe has previously said wage rises and weak productivity growth posed a risk to getting inflation back down to the 2-3 per cent target range.

Monthly data, released last week, showed headline inflation fell to 5.6 per cent for the year to May.

It came after the Fair Work Commission increased the pay rates for 2.4 million people on award wages by 5.75 per cent.

Read related topics:Reserve Bank

Original URL: https://www.news.com.au/finance/economy/interest-rates/bill-shorten-and-dan-tehan-trade-barbs-ahead-of-reserve-bank-interest-rate-call/news-story/994903d057211dcb41b668c0c76c4662